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ots Ad hoc-Service: splendid medien AG <DE0007279507> Splendid Medien AG -Provisional figures for 1999

Cologne (ots Ad hoc-Service) -

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Splendid Medien AG -Provisional
figures for 1999
Strong increase in sales and earnings - EBIT growth of 186 percent
Splendid Medien AG, Cologne, generated provisional sales of DM
37.7 million in financial 1999, thereby exceeding the equivalent
figure for 1998 (DM 29.0 million) by 30 percent. Earnings before
interest, tax, depreciation and amortization (EBITDA) was up by 43
percent to DM 28.3 (19.8) million on a provisional basis. Splendid
achieved even stronger growth in operating result (EBIT), where last
year's figure of DM 3.6 million improved to DM 10.3 million (+186
percent).
Result of ordinary operations at the company improved by 213
percent to DM 11.6 (3.7) million. The provisional contribution of the
subsidiary Initial Entertainment Group, Inc., Los Angeles (IEG), was
DM 0.3 million after tax. DVFA earnings after tax also achieved
triple-digit growth, improving by 213 percent to DM 7.2 (2.3) million
compared with last year's figure. After the non-recurring costs of DM
9.3 million for the IPO, Splendid has announced a net profit of DM
1.2 million.
Dietmar Schmitz, CFO of Splendid Medien AG, had the following to
say: "With these provisional figures, we have by far exceeded the
budgeted figures which we announced at the point of our IPO." The
strong growth in EBIT is due primarily to the company's profitable
film library. When the license for the initial stage of the
exploitation chain has expired, the book value of the films has
generally been written down to zero; accordingly, the films generate
a high margin in the current phase of subsequent exploitation.
In future, Splendid anticipates that its earnings situation will
improve significantly, one factor being the
co-production/co-financing of big-budget Hollywood films. Last year,
Splendid invested DM 29.4 (23.1) million in big-budget films with a
star cast, and has thus widened the base of its future business. The
projects include "Dr. T. and the Women", directed by Robert Altman
and starring Richard Gere, as well as the largest independent project
in the history of the cinema, namely "Gangs of New York", which is
directed by Martin Scorsese and which stars the "Titanic" star
Leonardo DiCaprio.
With its Video-Cassette for Sale/DVD operations, Splendid also
expects to continue to achieve an excellent performance as a result
of the distribution co- operation with Warner Vision Germany. Last
financial year, Splendid boosted the sales generated by these
activities by 388 percent from DM 0.9 million to DM 4.4 million.
The company prepares up its accounts in accordance with IAS
principles. The definitive annual figures will be presented and
explained by the Managing Board at an accounts press conference to be
held in Düsseldorf on 18 April 2000.
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